Steps for Forming a Company in Australia
Starting a company and choosing the right structure is not an easy task. In Australia, the process of company formation is straightforward. Below are the guidelines on how to form a company in Australia.
Ensure you choose the right company. There is a variety of company types including special purpose companies, and charitable companies. You need to settle on the company that aligns with your needs as well as if there is the need of using a different business structure.
Ensure you decide on the company name. The company name you choose will not be registered if an existing business or company uses it. A name with words that misguide clients on the business of a company and those considered offensive or displays illegality cannot be registered. A company name should show the liability its members have and status. If you are not settled on registering your company, you can request a name to be preserved for a period not exceeding two months, after which you have to re-reserve the name again.
Determine what will govern the company. Your company can be governed by replaceable rules if it does not want to have a constitution. Using replaceable rules will exempt your company from keeping on being updated because of changes in the law. Secondly, you can write a constitution with which your company should be governed. A proprietary company with one officeholder does not require either constitution or replaceable rules.
Each officeholder should know what is expected of them. In case you are an officeholder of a company, you need to comply with the requirements in the Corporations Act. These include doing your legal work including maintaining company records, paying the required fees, and ensuring the details of a company are updated. Officeholders are entirely responsible for adherence of the company to the Corporations Act.
Get the consent of members, occupiers, and officeholders. You should have a written consent from the individuals who will be directors, secretaries, members. For a proprietary company, at least a director and a secretary ought to reside in Australia. At least two directors are needed to be residents of Australia for any public company If the company does not own the registered offices, you should have a written permission of using the address.
Register your company. You can apply for an ABN to register your company online through the Government Business Registration Service. Secondly, you can register with a private service provider that offers online services with ASIC. It is possible to register your company with ASIC directly by completing their form then mail it to their offices.